From: Alex Luce [aluce@mindspring.com]
Sent: Friday, March 09, 2001 10:39 PM
To: rule-comments@sec.gov
Subject: Amendments to NASD Rule 2520 and NYSE Rule 431--UNFAIR,
UNETHCIAL, AND UN-AMERICAN!!
To the SEC,
I cannot express how distressed I am to read in the news today that
the SEC has decided to go ahead with the Amendments to NASD Rule 2520
and NYSE Rule 431. Please see the letter attached which I also
forwarded to your office last September, 2000.
I have been day trading now for over four months presently and started
with a $15,000 account. I am still learning to trade, but I haven't
lost all my money because like any responsible investor, I learned the
risks of the market before I started trading. How can the SEC decide
how I should invest and trade? What right does the government have to
decide how I want to invest and trade when I am risking my own money?.
What right does the government have to restrict my access to the capital
markets as a U.S. citizen? This is the land of opportunity. There is
nothing more in the world I want than to become a trader, and the SEC
is taking this opportunity away. I will not stand for this rule change
and will fight it every day until my voice is heard and this rule is
repealed.
Sincerely,
Alex Luce
Contents of Letter:
9/2/2000
Mr. Jonathan G. Katz, Secretary
U.S. Securities & Exchange Commission
450 Fifth Street, NW
Washington, DC 20549-0609
Re: Release No. 34-42418, File No. SR-NASD-00-03 and No. 34-42343,
File No. SR-NYSE-99-47; Margin Requirements for Day-trading Customers;
Amendments to NASD Rule 2520 and NYSE Rule 431
Dear Mr. Katz,
I writing this letter in objection to the proposed changes to NASD
Rule 2520 and NYSE Rule 431 in regards to the minimum requirement of a
$25,000 margin deposit for “Pattern” day traders.
I am not currently a day trader but I plan to start trading in a few
months. I have been saving money in mutual funds for the last three
years in order to open a day trading account at a direct access
brokerage. In addition, I have been paper trading with direct access
software for the last six months and have spent between three and four
hours a day for the last year studying the NASDAQ and NYSE markets.
I am also in the process of writing a business plan (to be updated
quarterly) which will detail my methods and approach for trading the
equity markets.
I am well aware of the risks inherent in day trading (and any kind of
investing) but I have prepared myself for success and am determined
to succeed. I am convinced that once learned, day trading with direct
access software is one of the SAFEST ways to trade or invest money in
the markets while maximizing your chance for a profitable return. While
I believe potential investors/traders should be warned of the risks of
trading and investing, I do not believe they should be penalized or
denied access to the markets for not having an arbitrarily determined
amount of capital with which to proceed.
Many successful businesses in this country have been started with less
than $25,000. Also many well capitalized new businesses have failed.
You may be aware of a recent study done by clearing firms that found
that only 5% of investing and trading accounts are consistently
profitable. It was also learned in this study the profitable accounts
were all found to be actively traded.
The public should be forewarned, but should not be denied access to
opportunity or entrepreneurship because of limited start up capital.
The smarter, well informed investors/traders will always be able to
make more of opportunity-but as in business, the majority will fail.
The only difference is that in short term trading the majority will
fail faster then in longer term investing. But they will fail either way.
Please do not deny those of us with limited capital the great American
opportunity to actively trade the U.S. equity markets.
Sincerely,
Alex Luce